Last Updated: 07 Sep 2024
Executive Summary
West Pharmaceutical Services Inc. (WST) is a leading designer and manufacturer of injectable pharmaceutical packaging and delivery systems. The company has a strong track record of financial performance, with consistent revenue and earnings growth. WST's shares are currently trading at $297.24, below the analyst target price of $353.18. The stock is considered a buy by analysts, with a consensus rating of "buy."
Company Overview
WST was founded in 1986 and is headquartered in Exton, Pennsylvania. The company has a global presence, with manufacturing facilities in the United States, Europe, and Asia. WST's products are used by pharmaceutical companies to package and deliver injectable drugs. The company's products include vials, syringes, and other components used in the production of injectable drugs.
Fundamental Analysis
WST's financial performance has been strong in recent years. The company has reported consistent revenue and earnings growth. In the most recent quarter, WST reported revenue of $2876.9 million, up 6.9% year-over-year. The company's net income was $453.2 million, up 10.3% year-over-year. WST's diluted EPS was $7.03, up 12.7% year-over-year.
WST's financial ratios are also strong. The company has a profit margin of 18.2%, an operating margin of 18.4%, and a return on assets of 10.7%. WST's debt-to-equity ratio is 0.44, which is considered to be a manageable level of debt.
Technical Analysis
WST's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages. The stock's relative strength index (RSI) is 39.7, which is considered to be a neutral level.
Short Term Outlook
WST's stock price is likely to continue to trade sideways in the short term. The stock is currently below its moving averages and its RSI is neutral. There are no major technical indicators that suggest that the stock is likely to make a significant move in either direction in the short term.
Long Term Outlook
WST's long-term outlook is positive. The company has a strong track record of financial performance and its products are in high demand. The company is also benefiting from the growing demand for injectable drugs.
Analyst Recommendations
Analysts have a consensus rating of "buy" on WST. The average analyst target price is $353.18, which represents a potential upside of 18.8% from the current price.
